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OCCUPANCY LEVELS IN VIENNA ARE STRONG IN EUROPEAN COMPARISONIf you examine the REVPAR (Revenue per available Room),
one of the most important indicators determining market
forces in the hotel industry, Vienna’s strength – but also its
weakness – becomes clear in the two determining factors
(occupancy rate and average net rate). In European compari-
son, the capital city is right at the top in terms of occupancy;
but not in terms of the net average room rate. Here, the
Viennese hotel market cannot keep pace with comparable
top European destinations such as Zurich and Munich. The
reasons include – as well as the historical trend – a low level
of market diversity, the high proportion of price-sensitive
leisure guests and relatively few off beat hotel products in
the design architecture segment. The serious lack of inter-
national luxury brands and the comparably small number
of institutional hotel investors should also be mentioned.
The high occupancy rates measured throughout the year
(weaker in January and February) are attained with low
ADRs but also high REVPARS.
Pentahotel Vienna
Source: STR Global, Cities selected by Kohl & Partner
25hours Wien
Budapest
Prague
Berlin
Vienna € 95,06 ADR
Hamburg
Munich
Barcelona
Frankfurt
London
Zurich
Paris
Budapest
Frankfurt
Prague
Berlin
Zurich
Barcelona
Vienna72,3% Occ
Munich
Hamburg
Paris
London
THE VIENNESE HOTEL MARKET WILL EXPAND FURTHER
NUMBER OF OVERNIGHT STAYS CONTINUES AT RECORD RATE
The strong growth in hotel capacity will also continue in
forthcoming years. Many operators who do not yet have a
presence in Vienna, above all those from the European brand
industry, are daring to venture into the Austrian capital city.
The principle reasons for this include the steadily increas-
ing number of overnight stays and a trust in the stability of
the market.
The highest growth rate was recorded in the 3-star segment,
with an approximate 27% increase in the number of beds
from 2007 - 2011. This was followed by the 4-star category,
2011 was another record year for Viennese tourism with 11.4
million overnight stays; this represents a plus of 5.0% on
the year before. There are many reasons for the consistent
growth. In addition to the very successful work of the Vienna
Tourist Board, with its associated Vienna Convention Bureau,
the most strongly represented hotel segment in Vienna,
with approximately half of overall capacity, which showed a
20% increase in the number of beds over the last fi ve years.
As well as the numerous luxury hotels in the city centre,
there will be strong growth particularly around the new
Main Railway Station (Hauptbahnhof) and in the defi ned
urban development areas. In terms of product, most de-
velopments are taking place in the growing (low) budget
and economy sector.
some newly emerging hotel real estate has been generat-
ing additional overnight stays in Vienna. The development
of the overnight stay fi gures is also a consequence of real
estate development, as well as the professional tourism
marketing which has already been mentioned.
Source: Wiener Tourismusverband (Vienna Tourism Board)
Overnights Room Supply ViennaArrivals
0
2
4
6
8
10
12
15
20
25
30
20112010200920082007
Mill
ion
Th
ou
san
d
POSITIVE PROSPECTS FOR THE VIENNESE HOTEL INDUSTRYlevel in the medium- and long-term, despite increased hotel
capacities, further development of the tourist infrastructure
(a third runway at the Vienna International Airport, cultural
institutions, link to the European high-speed network) is
necessary.
The downturn of room prices in Vienna was halted in the
year 2011. With a plus of 5.5%, the Average Daily Room Rate
(ADR) was at the 2009 level. If infl ation is deducted from the
ADR, a growth of just over the zero line can be seen. As the
level of occupancy rates remained almost constant, the REV-
PAR (Revenue per available Room) increased by 5.4 %. The
upscale segment profi ted most from the upward trend with
a plus of 5.6% in the ADR as well as 6.2% for the REVPAR. The
strong increase of 4,300 beds (comparison for December
2010 and 2011) prevented a more positive development of
the occupancy rates, despite record numbers of overnight
stays. The average length of stay continues to decline.
RECOVERY OF ROOM PRICES
AN OVERVIEW OF THE VIENNESE HOTEL MARKET
Motel One Wien Westbahnhof Hotel Daniel Vienna
Wiener Tourismusverband (Vienna Tourism Board)
Vienna continues to develop as one of Europe’s leading
congress centres. It has been possible to attract many large
events to Vienna once again during 2012, including the Eu-
ropean Radiologists’ Conference with approximately 20,000
participants. In order to maintain occupancy rates at a high
ArrivalsOvernights
ADROccupancy
REVPAR
4.868.654
11.405.048
€ 95,06
72,3%
€ 68,71
7,2%
5,0%
5,6%
-0,2%
5,4%
2011 % change to previous yearsKey Performance Indicators Vienna
CONFIDENCE OF THE HOTEL INDUSTRY UNDAUNTED
GROWTH POTENTIAL IN THE DESIGN AND LIFESTYLE SEGMENT
Vienna’s hoteliers are looking forward to the year 2012
with confi dence. According to an ÖHV (Austrian Hoteliers’
Association) Inside Survey, almost 60% of their member
establishments are expecting a growth in overnight stays of
As in the previous year, Kohl & Partner expects further
growth potential in the lifestyle and design orientated seg-
ment, especially in the (low) budget and midscale segment.
With the opening of Motel One, Pentahotel and 25hours,
Real estate owners and operators will be required to bring
attractive, modern hotel concepts on to the market and
further develop existing hotel real estate. The motto still
applies: no “more of the same”. Vienna has plenty of good
between 1% and 5%. 6.4% of establishments are expecting
growth to exceed 5%. Around 21% are expecting demand
to show a negative trend this year.
this development has already begun. The city of Munich,
for a comparable number of overnight stays, has twice as
much capacity (4,500 rooms) as Vienna in the growing (low)
budget segment.
establishments, but creativity and accurate target-group
orientated positioning is not strongly developed. If the po-
sitioning is unclear, then, in the fi nal analysis, only the low
price can be called on as a selling point.
Decrease of more than 10%
Not specified
Decrease of more than 5%
Decrease between 1% and 5%
No changes to the previous year
Growth between 1% and 5%
Growth of moren than 5%
Growth of more than 10% 0,0%
6,4%
0,0%
2,1%
2,1%
19,1%
10,6%
59,6%
Segment
Budget
Midscale
Upscale
Luxury
Past Future
Estimation of overnight
development for 2012
(individual and chain
operators)
Source: ÖHV
(Austrian Hotel
Association)
STUTTGARTMUNICH
INNSBRUCKZURICH BUDAPEST
SOFIA
BUCHAREST
SOUTH TYROL
VILLACH
VIENNA
SKOPJETIRANA
www.kohl.at
Kohl & Partner Wien GmbH
Hotel & Tourism Consultancy
Wallnerstraße 3
1010 Vienna
Austria
Tel.: +43 1 532 63 35
E-Mail: [email protected]
ASSET MANAGEMENT & ADVISORY
OPERATOR SELECTIONSFEASIBILITY AND SECOND OPINION STUDIESSTRATEGIC CONCEPT DEVELOPMENT
Range of Kohl & Partner Services:
CHALLENGES FOR THE INDUSTRYSustainability wins in our society, and is also increasingly becoming important in tour-
ism. Within the framework of a project, Kohl & Partner is developing concepts which
address the issue of reducing our CO2 footprints in the long term.
As the cost issue has been exhausted in most establishments, productivity increases in
terms of revenue are more important than ever. To attain the same GOPs when costs are
rising, revenue must be raised. Clever packaging, revenue management and a detailed
consideration of the gross margins are proven tools here.
Provisions for an increasingly higher proportion of bookings via online platforms and
the higher credit card percentage are cost-drivers in sales. Prices remain stable for the
customer, but the hotelier loses between 15% and 30% of his revenue.